Compulsory purchase reform in Scotland: consultation

Annex: Partial Business and Regulatory Impact Assessment (BRIA) Compulsory Purchase Reform September 2025

Introduction

This Partial Business and Regulatory Impact Assessment (BRIA) accompanies the Scottish Government’s consultation on compulsory purchase reform in Scotland.

The legislative framework governing compulsory purchase in Scotland is widely regarded as in need of reform. The Scottish Government has committed to take forward a programme of work to reform and modernise the system, with the aim of making the process simpler, more streamlined and fairer for all parties. The consultation document which this BRIA accompanies seeks views on a package of options and proposals (summarised in the Table at Appendix A).

Any substantive changes to Scotland’s compulsory purchase legislation will require a Bill. If taken forward, this would be introduced in the next session of the Scottish Parliament following the 2026 elections. An updated BRIA would accompany any such Bill.

Section 1: Background, aims and options

Background to policy issue

Compulsory purchase powers enable specified bodies (known as ‘acquiring authorities’) to acquire land and property without the consent of their owner where there is a strong enough case in the public interest. These acquiring authorities comprise a wide range of public organisations, including local councils, Transport Scotland and Scottish Water, and some private ones, primarily airport operators and companies responsible for electricity infrastructure. For example, local councils can use their powers to support housing and planning projects, transport bodies can use them for new or improved road and rail links and utilities can use them to roll out and upgrade infrastructure. Acquiring authorities utilise their powers by preparing a compulsory purchase order (CPO).

Taking an individual’s or a business’s property is a significant step which interferes with the rights of those affected. The use of compulsory purchase powers therefore requires careful consideration and clear justification to demonstrate that it is necessary and proportionate. But when used effectively, compulsory purchase can support the delivery of a wide range of projects – both large and small – that would not otherwise come forward. This can range from bringing empty properties back into use through to the delivery of major infrastructure and town centre redevelopment schemes. Scottish Government policy therefore encourages a positive and proactive approach to the use of compulsory purchase. However, Scotland’s compulsory purchase system has not been substantively updated for several decades and is widely regarded as being in need of reform.

Purpose/ aim of action and desired effect

By helping to unlock projects in the public interest, the use of compulsory purchase can contribute to many of the Scottish Government’s wider plans, policies, and strategies – such as the National Planning Framework 4, the National Transport Strategy and the Infrastructure Investment Plan – and contribute to our National Outcomes. However, if compulsory purchase is to play this role, Scotland needs a system that is fit for purpose.

Between 2014 and 2016 the Scottish Law Commission carried out a review of compulsory purchase in Scotland. Its 2016 Final Report concluded that “the legislation is old, difficult to understand and does not work effectively in a modern context” – and that those who the Commission consulted with “took the view that the system, both procedurally and in relation to the award of compensation, does not operate fairly”. The Scottish Government is therefore taking forward a comprehensive programme of work to reform and modernise the system.

The overall objective of the reform programme is to make the compulsory purchase system simpler, more streamlined and fairer for all parties. In doing so, our aim is to move towards a system that is:

• Equitable: Compensates claimants fairly and timeously
• Effective: Supports efficient decision-making, whilst ensuring procedural fairness, openness, and transparency
• Easy to understand: Provides all parties with certainty and clarity about how the process works and their rights, roles and responsibilities within it

The Scottish Government wants compulsory purchase to fulfil its potential as a tool for delivering projects in the public interest – one that encourages authorities to make positive and proactive use of their powers in appropriate circumstances, including in partnership with third parties.

Options

The Scottish Government has developed a package of options and proposals to meet the aims of compulsory purchase reform mentioned above. This was done through a combination of: stakeholder engagement, reviewing existing evidence sources, such as the Scottish Law Commission work, and by considering changes to equivalent systems in England and Wales. Additionally, the Scottish Government established a Practitioner Advisory Group to support the reform programme by providing feedback, advice and insights drawn from members’ practical knowledge and experience of compulsory purchase and compensation.

The reform programme has been structured around five thematic ‘building blocks’:

• Enabling powers
• Early engagement
• Confirmation procedures
• Taking possession and title
• Compensation

The table in Appendix A of this BRIA summarises the options and proposals which the accompanying consultation document seeks views on (option 1), organised under the five building blocks.

Sectors/ Groups affected

The main groups affected will be:

• acquiring authorities
• owners and occupiers whose land is acquired by (or under the threat) of compulsory purchase, which may include businesses

The overall purpose of compulsory purchase is to facilitate schemes in the public interest. Works delivered through a CPO can therefore be expected to benefit the general public. By extension, proposed reforms which improve the general operation of the CPO system should have positive impacts overall. However, the specific impact will ultimately depend on the type, location and number of projects which utilise the reformed compulsory purchase regime. It is not possible to forecast this with any certainty. The analysis of costs and benefits below identifies some measures which may have particular impacts on business interests.

Section 2: Engagement and information gathering

Engagement approach

Practitioner Advisory Group

The 2023-24 Programme for Government indicated that an expert group would be appointed to help inform the development of reform proposals. Doing so was also identified as an action in the National Planning Framework 4 Delivery Programme.

In line with this commitment, the compulsory purchase reform Practitioner Advisory Group (PAG) was established in Spring 2024 – chaired by Roseanna Cunningham and the Chief Planner. The overarching role of the PAG has been to support the Scottish Government’s reform programme by providing feedback, advice and insights drawn from members’ practical knowledge and experience of compulsory purchase and compensation. More information about the PAG, its membership and terms of reference – as well as meeting minutes – can be found on the group’s webpage: Compulsory Purchase Reform Practitioner Advisory Group - gov.scot

Wider engagement

A wide variety of stakeholders have an interest in compulsory purchase in the private, public and third sectors. In developing the measures set out in the consultation document, Scottish Government officials have engaged with a number of individuals and organisations. This includes:

• individual local authorities and representative bodies such as the Convention of Scottish Local Authorities (CoSLA) (see also section below on public sector engagement)
• professional bodies such as the Compulsory Purchase Association Scotland and the Law Society of Scotland
• land and development bodies such as Scottish Land and Estates and Scottish Property Federation
• organisations interested in land reform such as the Scottish Land Commission and Community Land Scotland

Internal SG engagement/ engagement with wider Public Sector

Within Government

The starting point for our enquiries about enabling powers was Scottish Government and Transport Scotland colleagues with policy responsibility for the various compulsory purchase powers that have been considered. This extended across areas such as health, education, road, rail, airports, housing, forestry, prisons, water and electricity infrastructure. In some cases, colleagues put us in direct contact with the relevant bodies with CPO powers: for example, the Scottish Fire and Rescue Services and airport operators; or they themselves liaised with the bodies such as the Scottish Police Authority.

UK / Devolved Administrations

We have liaised with the UK Government’s Ministry of Housing, Communities & Local Government (MHCLG) to understand the rationale for changes to compulsory purchase legislation being progressed in England and Wales, including through the Planning and Infrastructure Bill.

Wider Public Sector and Business / Third Sector engagement

Local authorities have a number of CPO powers. We have therefore reached out to various bodies that bring together local authority and public sector interests including:

• Society of Local Authority Lawyers & Administrators in Scotland (SOLAR)
• Association of Local Authority Chief Housing Officers (ALACHO)
• Local Authority Building Standards Scotland (LABSS)
• Heads of Planning Scotland (HOPS)
• Key Agencies Group (KAG)

Public consultation

This Partial BRIA accompanies a substantial public consultation published in September 2025. The consultation will run until December 2025. A brief summary of the feedback will be included in the final BRIA.

Progress Report

We published a Progress Report on 18 December 2024, which was shared with an extensive range of organisations and bodies. The purpose of the Report was to recap progress up to December 2024, summarise emerging proposals and set out next steps as we headed into 2025.

Section 3: Costs, impacts and benefits

Quantified costs to businesses

The impacts of the proposed reforms will to a large extent depend on the number and nature of CPOs that are ultimately promoted under the reformed system. It is not possible to forecast this with any certainty. Seeking to quantify specific impacts on businesses and other organisations is not feasible at this stage, especially while a number of the measures will be subject to further refinement and testing (notably those that relate to compensation).

It is also worth noting that not all businesses are affected by compulsory purchase in the same way. Clearly, some businesses will experience compulsory purchase as a directly affected owner or occupier whose property is acquired. On the other hand, it is possible for businesses to work in partnership with acquiring authorities to promote development projects that involve compulsory purchase – through so-called ‘back-to-back’ arrangements. The motivations of these businesses will clearly be very different – and changes to the CPO process will affect them differently too. Other businesses may be affected by compulsory purchase projects more indirectly. For example, a road project unlocked via a CPO may bring additional business and investment to an area – and local businesses of various types may benefit as a result.

Streamlining and simplifying the CPO process are core aims of the reform programme, and as set out in Appendix A we anticipate that several of the proposed measures will have that effect. To that extent, we would anticipate that businesses and other parties engaging with the process will generally benefit from greater speed, certainty and clarity. However, the specific costs/benefits will be very dependent on the circumstances of the case. There are no ‘typical’ costs which could be used to extrapolate broader impacts. To try and address this, the accompanying consultation seeks views on potential data and evidence sources that might help to quantify impacts more meaningfully.

The overall thrust of the reform options and proposals is to streamline and simplify the CPO system – and as indicated above, the effects of the majority of the proposed measures are likely to be beneficial to business. However, a number of the proposals could potentially increase business costs, even if offset by overall benefits/savings:

• new powers for authorities to require the provision of information about land ownership – potential costs of complying with such requests
• new requirements to engage with affected parties could increase costs for acquiring authorities
• allowing awards of costs (which currently apply to public local inquiries) to be claimed for written submissions and/or hearings
• allowing longer implementation timescales to be specified (and/or timescales to be extended where there is a legal challenge) could increase uncertainty for businesses subject to CPO. Shorter implementation periods could create delivery challenges, and hence costs, for large and/or complex projects
• several of the compensation measures could directly affect the levels of compensation paid to the owners and occupiers of land by the acquiring authority. The extent of any effect would depend on the circumstances of the case. Businesses working in partnership with an acquiring authority through a back-to-back CPO (i.e. paying compensation) and those who are the subject of a CPO (i.e. receiving compensation) will be impacted differently

In a number of areas (e.g. how to assess market value, calculation of loss payments), the consultation seeks high level views on various options. Further policy development and design is required before impacts can be determined – this process will be informed by the consultation feedback and will involve additional assessment and data gathering. For example, with respect to loss payments, the consultation seeks views on several options calculating the relevant amount: retaining the current approach (% of market value subject to maximum and minimum levels), a flat rate or a rate linked to length of occupancy. In each case, further testing would be required to determine the appropriate amount and associated impacts.

Benefits to business

While compulsory purchase reform has the potential to support private sector development, it is not currently feasible to quantify the impact. Potential benefits to businesses – such as specific sectors or the wider Scottish supply chain – remain uncertain at this stage. However, it is possible that a more efficient and modernised CPO system could contribute to more streamlined processes, longer-term savings, and improved resource efficiency. Any such benefits would depend heavily on how the reforms are implemented and the nature of future CPO cases.

As noted, quantifying the specific impact of many of the proposed measures is not feasible at present. This is either because further policy development is required before measures can be finalised, a lack of available/relevant data, and/or the number of unknown variables that will affect the impacts.

However, some data is available on the timescales involved in the CPO confirmation process. This makes it possible to indicate the potential time savings that could be associated with certain proposed measures. Such time savings could translate into reduced uncertainty and costs for businesses involved in the CPO process. The proposals in question are:

• time limits for referring cases to DPEA
• self-confirmation of unopposed CPOs by acquiring authorities
• delegation of CPO decisions to DPEA Reporters

By way of very brief summary, CPOs are generally submitted to the Scottish Ministers for a decision on whether or not to confirm (i.e. approve) the Order. At the same time as doing so, the acquiring authority will serve and publish notices indicating objections to the CPO should be sent to the Scottish Ministers. Where no objections are received by the end of the objection period set, Scottish Ministers may proceed to make a decision. If objections are received, the case will be referred to the Directorate for Planning and Environmental Appeals (DPEA). A DPEA reporter is appointed to consider the objections and make a report and recommendation to Scottish Ministers, who then determine the case.

Time limits on DPEA referral

This relates to the potential introduction of a statutory time limit on the period between receipt of a CPO by Scottish Ministers and its being passed to DPEA to consider objections. The intention would be to stop this period continuing unduly, usually due to negotiations on objections, causing uncertainty and delay.

We have looked at the time taken from receipt of a CPO to its referral to DPEA for a 10-year period from 1 May 2015 to 30 April 2025. This is based on data from DPEA on cases received by them in that period and using the online Register of CPOs to identify when the CPOs were originally submitted to Scottish Ministers. This amounted to some 36 cases across a wide variety of CPO types.

The time taken to refer the case to DPEA in these cases ranged from 22 to 519 days. The average time taken in this period for these cases was 196^[40] days. If we disregard the three longest cases, which look like potential outliers, the average drops to 170 days.

Time Taken	No. of Cases
Less than 60 days	5
60 to 100 days	5
100 to 200 days	11
200 to 365 days	12
365 to 1764	3

This suggests a statutory time limit could shorten any delay in moving the case on to DPEA by up to several months. Ultimately, the extent of the savings would depend on what time limit is set.

Self-confirmation of unopposed CPOs by Acquiring Authorities

This relates to potentially allowing the acquiring authority to confirm their CPO where no objections are made or all objections made are withdrawn. The consultation outlines two broad options:

1. CPOs continue to be submitted to the Scottish Ministers but are returned to the acquiring authority for a decision if there are no statutory objections or all such objections made are withdrawn.

2. CPOs are only submitted to Scottish Ministers if there are statutory objections, i.e. the case stays with the acquiring authority until the end of the objection period and objections are to be made to them not the Scottish Ministers.

With either option, we could still have cases referred with objections which are then withdrawn. So, as regards evaluating time saved, we are only looking at the time saved when no objections are made to a CPO.

We have figures for the period between submission of a CPO and a decision by Scottish Ministers on CPOs with no objections received. These relate to 43 Planning and Housing CPOs determined in the 10-year period 1 May 2015 to 30 April 2025.

Taking those figures for Planning and Housing CPOs where no objections were made together:

• shortest time was 21 days
• longest time was 698 days
• average time was 99 days
• average time minus the longest times taken was 76 days^[41]

So, not having to submit unopposed cases to Scottish Ministers could reduce the processing time for CPOs with no objections by an average of two to three months. This might be offset slightly by the acquiring authority’s own confirmation procedure.

Delegation of Decisions on CPOs to DPEA Reporters

This relates to the proposal to allow opposed cases (i.e. CPOs where objections are made and maintained) to be delegated to DPEA Reporters. For delegated cases, Reporters would decide whether or not the CPO is confirmed – rather than making a report and recommendation to the Scottish Ministers.

To evaluate the potential savings which such a measure could bring about, we have compiled data on the current time between Reporters issuing their report and an eventual decision being made by Ministers. We have figures for that step for 11 Planning and Housing CPOs^[42] over a 10-year period (cases determined form 1 May 2015 to 30 April 2025)^[43].

Taking those figures for Planning and Housing CPOs together:

• shortest time was 12 days
• longest time was 106 days
• average time was 51 days
• average time minus the longest time taken was 45 days^[44].

This suggests a potential saving on average of a month and a half from the processing of opposed cases.

To obtain the data for cases which received no objections and where objections were received and maintained, we used the online Register of CPOs to identify cases, and used the DPEA online register and our case files to get information on whether objections were made and maintained and dates of DPEA Reporters’ reports.

Small business impacts

It is not possible to assess the differential impact on small businesses with certainty at this stage. However, it is reasonable to suggest that small businesses subject to CPOs may be disproportionately affected by the current system’s complexity and age due to their relative lack of resources. As such, they are likely to benefit from legislative measures that simplify and streamline the CPO process in Scotland – and any new guidance that explains how new procedures work. Measures which could be particularly beneficial to smaller businesses include:

• allowing claims for expense awards to be made where objections are considered through written submissions or hearings – not just PLI cases
• clarifying compensation entitlements associated with any new rights of entry
• introducing new general powers for acquiring authorities to create new rights and take temporary possession – rather than always having to acquire full title on a permanent basis
• standard compensation claim form
• measures to incentivise timely payment of compensation (including advance payments)
• changes to loss payments, including option of these being calculated on the basis of a flat or graded rate rather than being linked to market value

Investment

A greater willingness to support land assembly in collaboration with third parties may have a positive overall effect on investment by facilitating development opportunities. To the extent that compulsory purchase reform helps to facilitate the delivery of infrastructure projects (e.g. transport and energy schemes), there may be indirect positive impacts on investment.

The proposed options and proposals are not expected to significantly influence Scotland’s overall attractiveness as a global investment destination; any potential impact on overall investor sentiment is likely to be relatively modest. The measures are broadly aligned with the aims of the First Minister’s Investor Panel, particularly in supporting a more coordinated and enabling approach to development, although their direct connection to investor sentiment is probably limited.

Workforce and Fair Work

Workforce and Fair Work issues are not applicable. The proposed options and proposals are not expected to have any significant impact on the workforce, such as influencing inclusive recruitment practices or job satisfaction. Similarly, they are unlikely to affect businesses’ ability to meet Fair Work First principles, including the payment of the real Living Wage. There is no clear link between the proposals and the promotion of Fair Work First principles.

Climate change/ Circular Economy

The potential impact of the options and proposals on businesses' ability to contribute to climate/circular economy targets will ultimately depend on the specific CPOs that come forward under the reformed system. Whether the measures will support the reduction, reuse, or recycling of resources by businesses, or influence the volume of goods and services consumed in Scotland, cannot be determined in general terms.

Competition Assessment

The options and proposals are not expected to have any impact on competition. Specifically, they will not directly or indirectly limit the number or range of suppliers, restrict suppliers’ ability or incentives to compete, or affect consumers’ ability to engage with the market and make informed choices. Additionally, the options will not influence the suppliers’ ability or motivation to introduce new technologies, products, or business models. Overall, there is no evidence to suggest that the measures would either distort or enhance competition within the affected sectors.

Consumer Duty

In relation to the key questions associated with applying the Duty, none of the concerns raised are applicable to compulsory purchase. The proposal does not present any identifiable impacts on consumers, nor is it likely to result in consumer harm. There are no alternative proposals currently under consideration that would improve outcomes or reduce potential harm to consumers, and as such, no comparisons are necessary. Overall, the proposal is not expected to affect consumers in any significant way.

Section 4: Additional implementation considerations

Enforcement/ compliance

Most of the measures will be implemented through legislative changes, which acquiring authorities as well as affected owners and occupiers will be required to follow. The Scottish Government will seek and promote compliance primarily by implementing the requirements within the new legislation. Responsibility for monitoring, compliance and taking enforcement actions will rest with the relevant authorities under the legislation. Ultimately, any failure to comply with legislative requirements would be a matter for the Courts.

We will be rolling out a suite of revised guidance with any new legislation to help explain the requirements and indicate what is expected of acquiring authorities. This would be in relation to the exercise of their compulsory purchase powers, implementing a confirmed compulsory purchase order and in paying compensation and making any advance payments in that regard.

UK, EU and International Regulatory Alignment and Obligations

Internal Market/ Intra-UK Trade

The consultation proposals are, if implemented, likely to bring Scotland’s compulsory purchase legislation into closer alignment with that of the rest of Great Britain, where incremental reforms have taken place over the past 25 years – a process which has not occurred in Scotland.

International Trade Implications

The consultation proposals are not considered likely to affect international trade. They are not expected to impact imports or exports of specific goods or services, nor to influence trade flows with any countries. The measures do not impose particular technical requirements on imported goods, nor do they differentiate between domestic and foreign businesses in a way that would create an uneven playing field or disadvantage certain countries.

EU Alignment consideration

The proposed measures are not considered likely to affect Scotland’s alignment with the European Union. They are not expected to impact the Scottish Government’s commitment to maintain and advance the high standards shared with the EU, nor to influence access to EU markets for people, goods, or services. Additionally, the measures do not present any significant implications for EU alignment in relation to the United Kingdom Internal Market Act 2020 or relevant Common Framework agreements.

Although separate from the EU, it is recognised that compulsory purchase has ECHR implications. Taking a person’s property is a serious step and one which interferes with the private rights of those affected; it also engages various protections^[45] under the ECHR. While the use of compulsory purchase can help to deliver positive outcomes in the public interest, it is essential that appropriate safeguards are in place to ensure that, in any given case:

• the use of compulsory purchase powers is justified and proportionate
• those who are affected have the opportunity to object and are compensated fairly

Legal Aid

The options and proposals are not expected to have a significant impact on legal aid. They are unlikely to affect individuals' right to access justice through the availability of legal aid, nor are they anticipated to increase expenditure from the legal aid fund. Additionally, the reforms are not expected to lead to a rise in the number of people seeking legal assistance or pursuing court action.

Digital impact

The proposed measures take account of changing digital technologies and are intended to support the use of such technology, where and when appropriate. The primary focus of the current reform programme is on updating the legal framework governing compulsory purchase. While legislative reform can play a positive and enabling role in supporting the shift towards a more digital CPO process, digital transformation cannot be delivered through legislative reform alone. The consultation document acknowledges that this is a broader, longer-term undertaking that will ultimately require investment and collaboration from a range of industry partners.

In this context, the consultation seeks views on measures intended to help digitise compulsory purchase procedures – while safeguarding against digital exclusion. These measures are expected to enhance transparency, efficiency, and accessibility within the compulsory purchase system.

Business forms

The consultation document seeks views on introducing a new compensation claim form. Additionally, some of the other proposals may necessitate new forms or amendments to existing forms. For example, the Compulsory Purchase (Scotland) Regulations 2003 prescribe a range of forms for the transmission of information and of notices, which may need altered or amended in light of the finalised package of changes. The intention would be to help clarify information requirements. Any new forms can be tested with relevant industry stakeholders prior to implementation to ensure they are fit for purpose and user-friendly.

Section 5: Next steps and implementation

The final package of compulsory purchase reform measures will be informed by the consultation responses and a finalised BRIA.

Implementation of reforms will be dependent on the planned bill forming part of the legislative programme of new Scottish Ministers after the 2026 Scottish Parliamentary Elections. Secondary legislation and guidance will be required subsequent to a bill. We recognise the need for a careful rollout of new requirements and any transitional arrangements and the introduction of new forms. However, at this stage it would be premature to develop a detailed plan for implementation.

Given these uncertainties, it is also too early for a detailed plan for post implementation review. The Scottish Government currently maintains a register of all CPOs submitted to Scottish Ministers for confirmation (including associated timescales) and we engage regularly with stakeholders with an interest in the subject matter, such as the Compulsory Purchase Association Scotland.

Declaration

I have read the Business and Regulatory Impact Assessment, and I am satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impact of the leading options. I am satisfied that business impact has been assessed with the support of businesses in Scotland.

I am also satisfied that officials have considered the impact on consumers as required by the Consumer Scotland Act 2020 in completion of the Consumer Duty section of this BRIA.

Signed: Ivan McKee

Date: 19 August 2025

Minister's name: Ivan McKee MSP

Minister's title: Minister for Public Finance

Scottish Government Contact point: CPO.Reform@gov.scot